A Bank Will Generally Hold a Fraction of Its ________

question 75

Multiple Choice

A bank will generally hold a fraction of its ________ as ________.

• A)deposits; desired reserves
• B)deposits; required reserves
• C)loans; required reserves
• D)loans; desired reserves
• E)deposits; excess reserves

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Definitions:

Voidable Contract

A legally enforceable agreement that may be declared void at the option of one of the parties due to certain defects or circumstances.

Executory

Not yet executed; not yet fully performed, completed, fulfilled, or carried out; to be performed wholly or in part.

Express Contract

A contract in which terms are explicitly stated and agreed upon by the parties, either orally or in writing.

Mutual Agreement

A common understanding or an arrangement that is accepted by all parties to a transaction or contract.